Bricine Mitchell v. Continental Casualty Insurance

Background

Bricine Mitchell filed a putative class action against Continental Casualty Insurance in state court. The complaint alleged violations of the California Business and Professions Code. Continental removed the case to federal court, asserting diversity jurisdiction, which is a basis for federal jurisdiction when the parties are diverse and the amount in controversy meets the required threshold.

Jurisdictional issue

The court determined that Continental had not shown that the amount in controversy exceeded the jurisdictional threshold. Because it was unclear from the state-court complaint whether the required amount was alleged, Continental had the burden to establish by a preponderance of the evidence—that it was more likely than not—that the amount in controversy exceeded the threshold. The court ordered Continental to show cause why the case should not be remanded for lack of subject-matter jurisdiction.

Continental responded that, after reviewing the court's order and considering Mitchell's previously expressed willingness to agree to remand, it did not oppose returning the case to state court.

Ruling

Judge Jacquelyn Corley remanded the case to the Superior Court of the State of California for the County of San Francisco. The court ordered its clerk to transfer the federal case file and a certified copy of the remand order to the state-court clerk. The state court could then proceed with the case. The order disposed of Docket No. 15.